An international intergovernmental organization is an entity formed by the governments of various foreign countries to coordinate government policy and/or action on targeted issues. The European Free Trade Association (EFTA) is one type of an international organization. It is an organization based on free trade among its member nations.
Formation
EFTA was formed in 1960. It was viewed as an alternative to joining the then-called European Community (now known as the European Union). The treaty establishing EFTA is known as the Stockholm Convention.
Members
The original members of EFTA included Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom. Only two original members remain: Norway and Switzerland. In addition, two other countries that joined EFTA subsequent to its formation are still members: Iceland and Liechtenstein.
Of the members that have left EFTA, they have done so to join the European Union.
Structure
EFTA has four main institutions that comprise the organization: (1) the Council; (2) the Secretariat; (3) the Surveillance Authority; and (4) the Court. The Council is the organization's governing body and the forum in which representatives of the member states meet to discuss trade issues. The EFTA Secretariat is charged with the implementation of the EFTA treaty and day-to-day administration of the organization. The Surveillance authority ensures that member states uphold their obligations under the treaty. The Court mainly deals with actions brought by the Surveillance Authority against a member state for infringement of the treaty.
European Economic Area
The European Economic Area was created in 1994. It was formed by an agreement between EFTA and the European Union, with the purpose of allowing the EFTA countries to be a part of the European Union's single market without having to actually join the Union itself. Iceland, Liechtenstein, and Norway entered into this agreement, but Switzerland did not.
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